Study On The Impact Of Position-building Of Main Force Investors On The Stock Risk In The Stock Market

The development of the stock market is related to the deleveraging and absorption of direct financing of enterprises,so developing the stock market is very important to the sustainable development of enterprises.However,Since the stock market crash in 2015,China’s stock market has been plagued by risks,especially on April 25,2022,the stock market again appeared the situation of "1000 shares fell by the limit",high stock risks have a negative impact on the development of listed companies,investors’ interests,stock market operation and even the national economy.Therefore,it is very important to study the influencing factors of stock risk to prevent and resolve major risks.This paper studies the impact of position-building of main force investors on the stock risk in the stock market.Few scholars have studied the impact of main force investors on stock risk from the perspective of position-building.First of all,the main force investors refers to all investors with financial strength,not only including institutional investors,but also considering that in order to evade the strict supervision of the CSRC and the information disclosure obligation after becoming a major shareholder,they register as several individual investors.It improves the problem that only institutional investors’ trading behavior is not comprehensive,makes the research more suitable for the real stock market.Secondly,stock risk can be divided into systemic risk and non-systemic risk from sources,and stock selection risk and timing risk from investors’ decision making.Stock selection risk and timing risk are influenced by both systemic risk and non-systematic risk.Currently,research on how to reduce timing risk is limited.In order to reduce the timing risk,the main force investors in the market gradually buy and sell stocks at different time points to realize the time portfolio.Finally,the process of position-building by the main force investors reduces timing risks and thus controls transaction costs.In the process of building a long position(gradually buying a stock),stock prices are stabilized and stock risks are reduced,while in the process of building a short position(gradually selling a stock),stock price volatility is aggravated and stock risks are increased.On this basis,this paper also studies the impact of position-building of main force investors on non-systemic risk of stock.Compared with systemic risk,non-systemic risk has less research results on influencing factors and is influenced by corporate factors and investor behaviors.It is "idiosyncratic risk" and deserves more attention from enterprises and investors.In addition,few scholars have studied the impact of position-building of main force investors on non-systemic risk of stocks.Therefore,this paper studies the problem.Through the combination of theoretical research and empirical research,this paper draws the following conclusions:(1)In a quarter,the market’s main force investors build long positions(gradually buying shares),will reduce the risk of the stock;and the market’s main force investors build short positions(gradually selling stocks),will increase the risk of the stock;(2)In a quarter,the market’s main force investors build long position(gradually buy stocks),will reduce the non-systemic risk of the stock;and the market’s main force investors build short positions(gradually selling stocks),will increase non-systemic risk of the stock;(3)The negative correlation effect of main force investors on the non-systemic risk of the stock with small market value is more significant;(4)When the time window is expanded from quarterly to annual,the impact of position-building of main force investors on non-systemic risk of stock is weakened,but there is still a significant negative influence relationship.The reliability of the results is further improved by robustness test.The research results of this paper provide a new perspective for CSRC to reduce stock risk and protect the rights and interests of small and medium investors;it expands ideas for enterprise risk management and control;it provides methods for investors to reduce timing risk.